The Venezuelan Crisis and Political Violence Insurance Protection

The Venezuelan Crisis

My native country of Venezuela finds itself in the midst of unprecedented political upheaval. Years of corruption and mismanagement have led to one of the most extreme examples of economic collapse. There have been shortages of all types of products, from staple goods to medicine.

For the past decade, people have seen their standard of living rapidly decline. Limited economic opportunities have also allowed crime to flourish with impunity. Life has become a daily struggle for survival. Individuals have had to endure the protracted collapse of society in a country of thirty million people.

The government and its opposition have juggled articles of the Venezuelan constitution, to their favor, in attempts to control the nation. The government has distorted it in a way that has allowed them to remain in power for two decades. The opposition, on their part, have set in motion a plan to remove the current government and call for new elections. Each party has their own interpretation of the facts and what the constitution allows. Both are ready to do what they deem necessary to enforce their will.

On January 23, 2019, the people of Venezuela took to the streets, in mass protests, to show their disdain of the current government and to demand a transition of power. The end of the day saw the country with two presidents, Nicolas Maduro who remained in office and Juan Guaidó who became interim president of Venezuela. Each stating that the other’s claim to power is illegitimate.

The Venezuelan people have made their demands known. They want change. The consequences of their protest are now taking shape. The country may now be at an inflection point. Many consider that the first step that must be taken towards recovery is to change the government. By some accounts, this is now inevitable. The hope is that the transition can be accomplished peacefully.

Regardless of what happens; there remains a long road ahead for all Venezuelans as the country looks to end its current economic and political struggles and recover.

Political Violence Insurance

Venezuela is entering a delicate period. The stage is set for two opposing political parties to fight for control of the country. Any slight miscalculation can tip the scales to violence. It is an outcome that neither party claims to want, but which may well be outside their control. To paraphrase Clausewitz, violence is the continuation of politics by other means. Therefore; if the situation escalates, Venezuela would not be the first example nor will it be the last.

The Middle East and Latin America have been hotspots of war and political violence. In Egypt, there were violent protests in 2012-2013. Syria descended to civil war in 2011. Colombia has been battling guerrilla groups for fifty years. Such are examples of political violence in the developing world. However; no region is immune. The United States and Europe have also seen their share of attacks. In all, terrorism and political violence have been the cause of untold death and destruction.

Insurance is available to protect businesses against political violence risks. Businesses have to weight their exposure to loss, against the cost of insurance protection. Political violence insurance can be purchased to cover: acts of terrorism, sabotage, riots, civil commotion, strikes, malicious damage, insurrection, revolution, rebellion, mutiny, coup d’état, civil war and war. The selected coverages can complement other insurance policies, address coverage gaps and ensure comprehensive protection for businesses.

The analysis of political violence perils, and your exposure to loss, should be impartial. The destruction that war, terrorism and political violence leave in their wake is value-neutral, meaning it is neither moral or immoral, nor good or bad; it is just destruction. An act of terrorism may be carried out by terrorists or by freedom fighters. A war may be unleashed to conquer others or to liberate them. How such events are interpreted may just depend on an individual’s point of view. Nevertheless; said events can be devastating to the individuals and businesses that suffer them, regardless of cause.

My hope is that calm will prevail as Venezuela looks to transition to a new government. Political violence events are unpredictable, their destruction can be absolute. You may not have control of whether you are a victim of a political violence event, but you can set instruments in place that will respond after a loss, to help you recover.

Risk Reinsurance Holdings, Inc. can assist with your terrorism and political violence insurance needs. We can help (re)insurance brokers worldwide arrange coverage for their international clients. We are also licensed as general and surplus lines brokers in the state of Florida, United States.

Learn about Risk Reinsurance Holdings’ capabilities as terrorism and political violence insurance brokers.